Monday, September 22, 2008

Your Bank's Money Market Account Really Is FDIC Insured

At least if the bank is one under FDIC insurance protection, its demand deposit accounts called Money Market Accounts are still protected up to the FDIC $100,000+ cap, just like any savings or checking account.  So say several websites (like this) including the official FDIC one.  The volatility widely reported last week as to "money markets" -- and efforts to cobble together an FDIC-like protection for "money Img_aboutfdic_2 market funds" -- actually meant those funds (or "money market mutual funds") that are not accounts in FDIC banks.  Of course some mutual funds, including those tracking the money markets, are sold by banks.  I am referring to demand deposit accounts, still FDIC protected even if called money market.  Maybe the media should be clearer on this before they cause a run on very safe accounts with similar names.  [Alan Childress]

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